Earnings Preview: JPMorgan Chase & Co.

| About: JPMorgan Chase (JPM)

Company Profile

JPMorgan Chase & Co., a financial holding company, provides various financial services worldwide. The company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management and private equity. JPMorgan Chase & Co (NYSE:JPM) is scheduled to report its second quarter earnings results on July 13, 2012, before market open.

Technical Overview

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JPMorgan has a market cap of $130.87 billion and it is currently trading around $34.38 with a 52 week range of $27.85 to $46.49. The stock has risen 3.4% year to date. The following table provides the key financial ratios for JPMorgan:

Key Ratio Value
PEG 1.04
P/E 7.97
Forward P/E 6.77
Profit Margin 19.05%
Return On Assets (ROA) 0.83%
Return On Equity (ROE) 9.84%

Recent News

  • On July 5, 2012, JPMorgan Chase announced it will donate $25,000 to the Colorado Chapters of the American Red Cross for wildfire relief efforts in Colorado.
  • On June 27, 2012, Chase Paymentech, a subsidiary of JPMorgan Chase & Co., launched its new Future Proof terminal, allowing merchants to accept current and quickly emerging forms of customer payments all in one streamlined device.
  • On June 27, 2012, J.P. Morgan Worldwide Securities Services has enhanced its collateral management platform in Japan, introducing core automation capabilities that will provide clients with significant efficiency gains while also meeting Japan's unique regulatory and legal requirements related to the management and protection of collateral under Japanese law.
  • On June 20, 2012, J.P. Morgan Worldwide Securities Services announced that its tri-party offering for Chicago Mercantile Exchange Inc.'s (NASDAQ:CME) IEF4 program will begin supporting corporate bonds.
  • On June 18, 2012, J.P. Morgan announced that it has made a capital increase of $250 million to its Mexican subsidiaries.
  • On JUNE 12, 2012, J.P. Morgan Worldwide Securities Services has extended the regional rollout of it securities lending capabilities to Malaysia, making it the first international lender in the Malaysian market to offer a securities lending product.
  • On June 11, 2012, J.P. Morgan Chase announced redemption of approximately $9.0 billion in aggregate amount of outstanding trust preferred capital securities.
  • On May 14, 2012, JPMorgan Chase announced that Ina Drew, Chief Investment Officer, has made the decision to retire from the firm. Matt Zames, currently co-head of Global Fixed Income in the Investment Bank and head of Capital Markets within the Mortgage Bank, will succeed Ina as the firm's Chief Investment Officer and continue in his mortgage-related responsibilities.
  • On May 11, 2012, Jamie Dimon, JPMorgan Chase's chief executive, announced that the bank had lost $2 billion related to credit derivatives and he estimated that losses could double within the next few quarters.

Analyst Guidance and Earnings History

The second quarter revenues are expected to be $21.97 billion when compared to $27.41 billion for the same quarter last year. Earnings per share for the second quarter are expected to be 79 cents a share, down from $1.27 a share in the year-ago period.

The average price target from analyst for JPMorgan is $45.27 with average rating is OVERWEIGHT. Out of the last 4 quarters, JPMorgan has met or exceeded the EPS estimates all the 4 times. The following chart shows the analyst estimates history and the actual EPS results:

The following chart shows the annual summary of Sales and Net income for JPMorgan:

Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC), Citigroup (NYSE:C), and Goldman Sachs (NYSE:GS) are considered as major competitors for JPMorgan and the table below provides the key metrics for these companies:

Sources: Some of the data is taken from Google Finance, Nasdaq, Yahoo Finance, Finviz and investor sites.

Disclosure: I am long BAC.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.

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Tagged: , Money Center Banks, Earnings
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